- On-chain data had revealed that more than $850 million flowed out of Binance before CFTC filed its lawsuit.
- The hours following the lawsuit saw an additional $240 million withdrawn from Binance.
- On December 13 last year, Binance reportedly processed $3 billion worth of withdrawals.
The Commodity Futures Trading Commission’s (CFTC’s) lawsuit against Binance has sent shockwaves throughout the crypto exchange and its user base. The aftermath of the civil lawsuit has seen hundreds of millions of dollars taken off the platform. However, recent on-chain data had revealed that a lot more was withdrawn before news of the CFTC’s lawsuit broke.
According to data compiled by blockchain analytics firm Nansen, more than $850 million were taken off Binance just a few hours before the federal regulator brought its civil case against the crypto exchange for alleged violation of regulations in the United States.
Research by Thanefield Capital found that nearly $1.5 billion were withdrawn from multiple centralized crypto exchanges, including Coinbase (NASDAQ:COIN) and Kraken, before the Binance issue. The withdrawals, which were in the form of stablecoins, were reportedly processed just a few hours before the Binance CFTC indictment.
Further analysis by Thanefield Capital revealed that just an hour after the CFTC announced its lawsuit against Binance, the crypto exchange saw an additional $240 million flow out. Nansen added that more than $400 million had been withdrawn to Ethereum-based funds over the past twelve hours.
However, Nansen clarified in a later tweet that this wasn’t the first time that such a significant portion of the money had left the crypto exchange platform in a single day. On December 13 last year, Binance reportedly processed $3 billion worth of withdrawals that day.
According to Nansen, despite these significant withdrawals, Binance still holds more than $63 billion worth of crypto assets, including 19 billion in USDT, $14.5 billion worth of Bitcoins, and $7.5 billion in Ether, among several other tokens.
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